Proactively arrest churn and grow customer value
Churn is expensive – not just due to the revenue loss from a paying customer, but also additional acquisition costs involved with replacing those customers, and the lost referral sales a loyal customer brings.
Retailers struggle to identify churning customers before it’s too late, and as a result miss the short window of opportunity where they can systematically nurture and bring paying customers back.
Marketers need to spot disengaged customers early, then pick the right campaigns that will retain each individual, while also prioritizing customers with a high lifetime value.
Great retention programs focus on achieving long-term customer engagement, rather than transactional one-time re-activation through steep discounts. This requires a holistic understanding of each customer and their reasons to lapse. With prescriptive analytics, this understanding can be translated to targeted, context-aware marketing actions that achieve the maximum possible retention and deeply engaged customers.